Shareholders of Colombian brewer Bavaria S.A. approve merger

Bogota, Columbia, Nov 29. Shareholders of Bavaria SA, the Colombia's largest brewer, approved a plan to absorb its two largest subsidiaries, Cerveceria Aguila and Malterias de Colombia, in order to cut costs as it aims at a $1 billion regional expansion plan, Reuters reported.

Bavaria's president, Ricardo Obregon, said: "Thanks to this merger, Bavaria SA as a company will have a more solid asset base and greater access to local and foreign financing." The merger with the two subsidiaries will cut the group's tax bills and allow economies of scale for purchases of supplies. The deal will add 1,000 workers to Bavaria's current payroll of 2,800.

Bavaria is Latin America's fourth-largest brewer and is controlled by New York-based Colombian businessman Julio Mario Santo Domingo. The company controls almost all of Colombia's beer market and dominates beer sales in Panama and Ecuador. Seeking to become a major regional player, it recently bought 24.5 percent of Peru's only brewer, Backus, Reuters said.

06 December, 2002